Elon Musk takes a swing at the SEC, in a tweet

Musk has agreed to pay a $20 million fine and step aside as Tesla's chairman for three years

Musk has agreed to pay a $20 million fine and step aside as Tesla's chairman for three years

Tesla chief Elon Musk on Thursday taunted federal regulators a few days after reaching a settlement with them over accusations of fraud, alleging the regulators who sued him last week had done so to help his enemies.

Saturday's settlement required Musk to step down as Tesla's chairman, appoint two new independent directors, and pay a $20 million fine.

Tesla CEO Musk may have settled with the U.S. Securities and Exchange Commission over that August tweet claiming he had the funds to take his electric auto company private, but that hasn't stopped the eccentric billionaire from tweeting. "And the name change is so on point!" the often-erratic exec posted Thursday afternoon.

The case is SEC v Musk, U.S. District Court, Southern District of New York, No. 18-08865. Ryan White, an SEC spokesman, declined to comment.

While some investors then came forward and confirmed that meetings had taken place in which Musk had raised the possibility of taking Tesla private, the message also caught the attention of SEC, which demanded an explanation. In an investor letter obtained by Reuters today, Hedge fund manager David Einhorn compared Tesla to Lehman Brothers Holdings Inc., a company whose bankruptcy Einhorn had predicted four months in advance.

The accord must still be approved by a judge and hasn't yet taken effect.

Greenlight is having a hard year, with its main fund down 25.7 percent through September, but said its Tesla short position was its second biggest victor in the third quarter.

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It was mere days ago that Musk and SEC agreed on a settlement to avoid a potentially lengthy battle over claims of securities fraud.

Former SEC lawyers questioned the wisdom of Musk's latest tweet, but said it was unlikely to jeopardize the settlement, which prevents Musk from denying wrongdoing or suggesting that the regulator's allegations were untrue.

Securities and Exchange Commision - recently spearheaded a lawsuit against Musk for his tweets about taking Tesla public at $420 a share.

Musk is Tesla's largest shareholder, holding some 22% of the company's outstanding shares at the end of previous year.

"They promised to have controls to keep him from doing these things", she said.

Updated at 5:25 p.m. PT with Musk's tweet about short sellers.

Back in May, Musk rudely cut off analysts on Tesla's first-quarter earnings call. Shares have been holding in that range as investors are most likely waiting to see who will helm the board of directors in Musk's absence - a key part in his $20 million settlement with the SEC.

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